(U, Pu)O₂ ceramic fuel is the well-established fuel for the fast reactors and (U, Pu, Zr) metallic fuel is the future fuel. Both the fuels have their own merits and demerits. Optimal solution may lie in opting for a fuel which combines the favorable features of both fuel systems. The choice may be the use of cermet fuel which can be either (U, PuO₂) or (Enriched U, UO₂). In the present study, attempt has been made to fabricate (Natural U, UO₂) cermet fuel by powder metallurgy route. Characterization of the fuel has been carried out using dilatometer, differential thermal analyzer, X-ray diffractometer, and Scanning Electron Microscope. The results show a high solidus temperature, high thermal expansion, presence of porosities, etc. in the fuel. The thermal conductivity of the fuel has also been measured. X-ray diffraction study on the fuel compact reveals presence of α U and UO₂ phases in the matrix of the fuel.